The clustering model implies that several gas stations sometimes locate at the same intersection:
A)because land is expensive in cities.
B)in order to make buying gas more convenient.
C)because profit maximization dictates this spatial arrangement.
D)due to high demand for gasoline.

Question

Quizplus · Accepted Answer

Clustering of gas stations at the same intersection is often a result of profit maximization strategies. By situating close to competitors, stations can attract customers who are comparing prices or seeking convenience, thus potentially increasing their own customer base despite the competition. This spatial arrangement is dictated by the desire to maximize profits rather than by land costs, convenience, or demand alone.

The Clustering Model Implies That Several Gas Stations Sometimes Locate